What happens to the growth rate of real output

Reference no: EM132194172

Question -

a. Assume that, over a 10-year period, the growth rate of capital is 4 percent, the growth rate of employment is 2 percent, and the growth rate of real output is 5 percent. Calculate the growth rate of technology.

b. Suppose that a permanent cut in the budget deficit increases investment and the growth rate of capital rises by 1 percent. How much does the growth rate of output increase?

c. Suppose that a tax reduction increases the supply of labor by 1 percent in one year. What happens to the growth rate of real output?

Reference no: EM132194172

Questions Cloud

Calculate the working age population : Go to the St. Louis Federal Reserve (FRED) database and find the most recent values of the national unemployment rate (UNRATE)

Perform an up-front and on-going cost comparison : You ask your team to perform an up-front and on-going cost comparison - Your team has recently built a new Web service that requires a hosting environment

Relating the millenial generation to work : What are the pros and cons relating the Millenial generation to work.

What ethical issues are raised by the card issuers conduct : What ethical issues are raised by the card issuer's conduct? What can you do to protect yourself from something like this happening to you?

What happens to the growth rate of real output : Suppose that a tax reduction increases the supply of labor by 1 percent in one year. What happens to the growth rate of real output

Type of divisionalization : How should an organization choose the type of divisionalization: Geography, product, market, or project?

What political factors are at work in the progression : What political factors are at work in the progression or regression of the technology (e.g., lobbyists, special interest groups, partisan views, vocal advocates

How important is information for consumer decisions : How important is information for consumer decisions (e.g, nutrition labels, CSR ratings, labels showing where a product was made, etc.)? Should such labeling be

In which respect does iraq have very shallow roots : Explain how this feature has constituted an obstacle to the country's political and economic development?

User Account

All Pages